In response to its scalability issues, effective solutions have not yet emerged since the bitcoin transaction was congested in 2017. Forgot to upgrade its lightning network. The Lightning Network was only launched on the test network and has not been widely used. The Bitcoin network can handle up to seven transactions per second, still far behind Visa’s maximum trading speed of 24,000 per second. This prompted the Bank for International Settlements (BIS) to publish a related report that concluded that cryptocurrencies (especially cryptocurrencies such as Bitcoin using a workload-proven consensus mechanism) are not scalable enough to be global Acting as a currency in the economic system.
Therefore, there is no guarantee that Bitcoin will be adopted on a large scale, and there is no guarantee that its competitors will not surpass it to become the most practical cryptocurrency at a certain moment. For example, Bitcoin Cash, which is a bitcoin forked coin with 32MB of block capacity split by developers from the Bitcoin main blockchain on August 1, 2017. Bitcoin has a block capacity of 1MB, Bitcoin cash is 32 times larger than Bitcoin’s block capacity, and can process up to 224 transactions per second.
Roger Ver, an entrepreneur and Bitcoin cash supporter, expressed his excellent trading speed in April this year:
“Bitcoin Core is being rejected by merchants around the world. Bitcoin cash is being actively accepted by merchants around the world.”
However, Bitcoin cash itself has some drawbacks. For example, its transaction fee is not always lower than Bitcoin, and it is not the only competitor that prevents Bitcoin from becoming the primary means of cryptocurrency payment. For example, Ripple’s consensus mechanism does not require mining, and it can process up to 50,000 transactions per second. The Litecoin (the bitcoin core fork) has a shorter block time and faster transaction processing than Bitcoin. Similarly, in May of this year, Ethereum also released a new version of its consensus mechanism to turn to the PoS Equity Proof, which may significantly increase its scalability and transaction processing speed.
Although the above shows that other cryptocurrencies may be the key to the future, this does not necessarily change the prevailing view of famous critics that bitcoin and its competitors are not “real currencies”. For example, in a well-known blog post on a degraded blockchain, Kai Stinchcombe wrote, “The number of retailers accepting cryptocurrency as a form of payment is decreasing,” according to a Morgan Stanley report. With a partial conclusion, the report found that among the top 500 “top online merchants”, between 2016 and 2017, the number of merchants receiving bitcoin payments was reduced from five to three.
However, Bach Nguyen of SatoshiLabs told Cointelegraph that the number is actually increasing overall. “A year ago, 9085 merchants were registered (using Coinmap),” he said. “And now there are 12,801 registered.”
This is equivalent to an increase of 3,716 merchants in a year, and compared with the number of companies in the world, these 12,801 may be just a drop in the ocean, which shows that regardless of the status of cryptocurrencies in the eyes of legal or financial experts, it is being The real currency is in use and is being used more and more.
The widespread adoption of cryptocurrencies as a form of payment still has to wait for many years, although some analysts believe that this is only a matter of time.
Mati Greenspan, an analyst at EToro crypto, told Cointelegraph:
“This is inevitable. It has been adopted in some parts of the world. The economy tends to experience periods of prosperity and hardship. As long as the economy is stable, there is no need for an independent currency. But where the government and banks have low levels of trust. , cryptocurrencies tend to prosper.”
For example, the inflation rate of the Turkish lira has reached double digits this year, and Turkey has more people with cryptocurrencies than any other big country in Europe. This means that cryptocurrencies have a rare opportunity to succeed at the expense of incompetent government. Although their scalability issues indicate that they are not fully prepared to take advantage of the current opportunity, their early application in the payments field has laid a solid foundation for their future development.